Saudi Arabia Will Continue To Flood OIl Market

[Angstrom]

Canada got a 15 billion dollar contract from Saudi Arabia

Canada had success in the past as a weapon dealer. It should help kickstart our military manufacturing. A good move if you ask me. China, no longer wants to play by our rules.

 

[WLDB]

Cheap oil is good for consumers and I'm a consumer.

Doesnt seem to have affected prices of anything else for the consumer so far.

 

[CDNBear]

Doesnt seem to have affected prices of anything else for the consumer so far.

Speculation trading and production manipulation further down the supply line.

 

[Angstrom]

Speculation trading and production manipulation further down the supply line.

The supply line has grown with globalization.

What we need to do, and fast, is to posture Canada as a major arms manufacturer, of very high quality grade weapons.

 

[taxslave]

Geopolitics happens when you deal with non-renewable resources.

And I'm sure democratic states like the UK will give a fukk about ethical oil when they say shyt like this:

Bank of England: Oil price fall 'good for UK economy' - BBC News

You know he is right of course. When the bulk of the population is forced to spend the bulk of their discretionary spending just to heat their homes and get to and from work the rest of the economy sags.Even fuel consumption goes up as people can afford to travel.

 

[captain morgan]

You know he is right of course. When the bulk of the population is forced to spend the bulk of their discretionary spending just to heat their homes and get to and from work the rest of the economy sags.Even fuel consumption goes up as people can afford to travel.

If only we had some Cdn manufacturing that would be hit by the high energy prices such that we could spend even more on things

 

[EagleSmack]

I think the only reason we are good allies with the Saudi's is because they have agreed to exclusively use our Currency for the trade of their oil.

This also means they have ended up with so much surplus of American Currency they probably don't know what to do with it all.

I think the recent move by China to buy Russian oil with Chines Yuan Currency triggered this economical war, and the move by Saudi's to undercut.

It's in the best interest of Saudi's to protect the Green Back, since they have trillions in reserves.

The move to trade oil with their own currency by China would depreciate the value of American currency.

And that would suck if you had trillions of American dollars in your reserves.

And China devalues their own currency as they see fit.

 

[captain morgan]

And China devalues their own currency as they see fit.

Well, at least they are global leaders in environmental responsibility.... That's something

 

[petros]

The only way to stop it is if the international community agreed to put sanctions on Saudi Arabia and that would allow for demand to grow for other exporting countries.

Why? They are our buddies in pummeling the snot out of Russia.

 

[Angstrom]

And China devalues their own currency as they see fit.

As long as they sell world wide with American money as their world trade reserves, I don't think anyone cares what they do with their own currency .

 

[MHz]

Why? They are our buddies in pummeling the snot out of Russia.

So far it seems like your buddies ISIS are the ones getting the crap beat out of them.

Riyadh More ‘Interested in Helping Rebels Than Fighting Daesh’ in Syria

Al-Nusra Front Confirms Deaths of 300 Terrorists in Syria's Aleppo

http://www.presstv.ir/Detail/2016/02/05/448836/Iran-wants-oil-payments-in-euros-only-

 

[petros]

That has what to do with sanctions and oil production?

Four-years of sanctions, oil slump cost Russia $600B - Daily Sabah

Even though you'll never get it, I'll post this released 4 hours ago...

Russia is exploring international bond issuance for the first time since the war in Ukraine sparked sanctions from the west, in a sign that the Kremlin is keen to find additional sources of revenue as the economy heads for a second year of recession.

The country’s finance ministry announced on Friday that it has approached 25 western investment banks and big Russian lenders Sberbank, VTB, and Gazprombank about a possible eurobond

In Euros eh?

The Ruble is rubble.

 

[MHz]

'starting with the 2014 Ukraine crisis and lasting to the end of 2017.' Considering it goes a few years into the future to arrive at your numbers it is a flawed report. It is easy to tell how much Turkey has lost in just the last few months due to Russian boycotts. The rest of the EU is losing as much as Russia did from the sanctions. You cannot attribute the drop in oil prices as part of the 'punishment' until you subtract what the other nations have lost due to the oil price drop. Canada would fit into that so how much have we lost from the price drop?
Really nice to see that you have to bring out deceptive arguments to show that the NATO promoted sanctions are doing something to Russia when the reality is she is now replacing imported items with domestically produced good that will continue after the sanctions are dropped so the only real loss is to the EU countries who helped impose sanctions as the exports to Russia will never start up again.

If the facts don't fit your desires just lie about it, that only works for a very short time.

 

[Angstrom]

ummmmm...Yes it is and it's the Saudi's against their enemies to which Canada becomes a victim. That is something the salty types in Alberta don't seem to be able to connect the dots on with their crayons.......

6 February 2016

One night in his tent in Tripoli, Libya, Col. Muammar Khadafi told me, “the Saudis are a very rich family hiding behind high walls, terrified their neighbors will come and steal their wealth.”

He was right. The covetous neighbor most feared by the Saudis are Iran, followed by Egypt, Turkey and, more distantly, Israel. Iraq also used to be on the list until it was destroyed by the United States in 2003.

One must keep Saudi Arabia’s fear factor in mind to understand the oil wars that are now shaking the world’s economy to its foundations.

The Saudi royal family decided to kill two competitive birds with one stone – Iran and surging US shale oil producers – by kicking off a price war to run them out of business. Saudi Arabia is one of the world’s lowest cost oil producers. The Saudis also hoped to punish Russia for backing Syria’s government.

Price wars are the last recourse of all bad businessmen.

The problem with this ham-handed strategy is that your competitors will hang on desperately and cut prices to survive, even if it means running big losses. Price wars hurt all concerned. They dislocate production, markets, future investments and capital spending.

The result of Saudi Arabia’s oil price war has been to drive the once “black gold” down to around $32 a barrel from a high of $105 in 2015. Other Gulf producers joined Saudi Arabia in slashing prices. We have gone from panic over “peak oil” (worldwide shortages) to panic that we are drowning in oil.

So far, the Saudi oil war has indeed badly damaged the US shale and regular oil industry but has not put them out of business.

However, oil industry dividends are being cut way back or eliminated. Blundering by the US, Canadian and Japanese central bankers has made things far worse.

Other major oil producers like Russia, Iran, Algeria, Malaysia, Kazakhstan and Indonesia have also been badly hurt but are hanging on. The oil war has seriously damaged the economy of the European Union. Japan should have been boosted by low oil prices but is also suffering relentless industrial decline, as witness by the humiliating sale of Sharp Electronics to China’s Foxconn.

Oil has become tightly correlated to North America’s stock markets, meaning that they rise and fall with the price of oil. Low oil prices may have helped a few industries like airlines, but they have created a worldwide recession. Canada, a dire example, has been battered by low oil prices and faces a bleak future unless resources rise sharply in price.

Efforts by OPEC and other oil producers to agree to cut back production and thus foster a price rise have so far failed due to fears that nations who reduce exports will see their former markets taken by cheating competitors. In economics, it’s known as ‘beggar they neighbors.’ The Saudis and Gulf producers keep blocking a decrease in oil production.

Now, the desert oil producers are deeply worried that Iran, freed from US economic prison, will soon begin exporting at least 500,000 bbls a day of oil. Iraqis oil production is finally returning to pre-US invasion levels. Oil prices could drop even further unless a deal is reached.

But Saudi Arabia is so petrified of Iran it is very reluctant to make a deal that will help grow the Islamic Republic’s economy – and hence even limited military power. So what’s to be done?

Some critics are saying that a group of obscenely rich Bedouins should not be allowed to hold the world economy to ransom. The western powers should press the Saudis to cut production or risk seeing vast Saudi investments in the US and Europe frozen – just as was done with Iran. The Saudis should also be told to stop their bloody war against Yemen that has killed thousands, cease their human rights abuses, and cease funding dangerous Islamic extremist movements, including ISIS and Syrian revolutionaries.

Why has this not been done? Because too many American and British politicians are on the Saudi payroll, and too much of Britain’s and America’s arms producers are dependent on Saudi business. The Saudis’ heads have swelled with arrogance while their dim-witted oil policies threaten the global economy.

The Saudis and OPEC must be offered a deal by the great powers that they can’t refuse. Otherwise, the Saudis may remain a bigger threat than ISIS.

SAUDIS – STOP THE OIL FLOOD – OR ELSE « Eric Margolis

Khadafi wanted to stop selling his oil for Euro, and exchange it for Gold, Look at what happened the minute he did? .

Our whole foreign policy is based on forcing the world to use our currency for global trade.
As long as we maintain this we can borrow unlimited amounts, and it will sustain itself.

It's called to big to fail on a global scale.

 

[petros]

Who was his partner in the oil biz?

 

[Angstrom]

As long as you create a situation where it is in no ones interests that your currency fails, everyone will be forced to maintain its value. And we are the issuers, so we can print as much of it as we see fit. It's the ultimate monopoly

Who was his partner in the oil biz?

He wanted to make the United States of Africa .

 

[petros]

Suncor gearing up to go back into Libya - The Globe and Mail

 

[Angstrom]

Suncor gearing up to go back into Libya - The Globe and Mail

There you go, Canadian

No wonder we killed khadafi lol

When you look at it from a bigger picture pointe of view, it's funny to watch that it resembles 7 kids in the same bed each tugging on a corner of a blanket.

Kicking and screaming at each other.

With nuclear weapons.

As long as big brother the United States has the biggest end of the blanket, it consequently covers us with it in the process.

 

[petros]

When Canadian Companies are in the OPEC realm it should start the average person to thinking "WTF is really going on?" Do they know or?

 

[Angstrom]

When Canadian Companies are in the OPEC realm it should start the average person to thinking "WTF is really going on?" Do they know or?

That's why I think the true key to understanding the complex global economics, Is easier to understand by looking at who is trading, and in what currency. This is where the true power lies. Especially if it doesn't have to be backed by anything real, but your word for it. lol.

The Americans can't lose, as long as they maintain their position at the top of the currency pyramid

A currency's value only exists based on how many imagine that it dose.